Cemex Will Continue With Disciplined Investment, CEO Says
By Anthony Harrup
Mexican building materials company Cemex will continue investing in a disciplined way now that it has recovered its investment-grade rating, chief executive Fernando González said Wednesday.
S&P Global Ratings upgraded Cemex last week to BBB- from BB+, returning Cemex to the investment grade it lost in 2009. The 2008-2009 global crisis hit after Cemex had taken on large amounts of debt for acquisitions, and led the Monterrey, Mexico-based company to refinance billions of dollars in debt and sell assets.
"It took some time, but here we are," González said of Cemex's return to investment grade.
Speaking at an investor event, González told analysts to expect a balanced approach to investments. "We are pleased with the investment grade. But we don't want only to maintain it, we want to improve it," he said. "We want to continue investing with the same criteria, a bolt-on type of investment."
The U.S. will continue to be the main recipient of investment. The U.S. accounted for about 55% of Cemex's investment in the past three years, and that could rise to about two-thirds, the CEO said.
Investment opportunities include aggregates, buying small to mid-size businesses, and cement, as Cemex's capacity in the U.S. is full, González said.
Cemex's resumed dividend program will become "systematic and progressive," and Cemex will also be making share buybacks, González added.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
March 20, 2024 09:36 ET (13:36 GMT)
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